City of Lathrop
Fiscal Year 2024/2025 Mid-Year Budget Review
MARCH 10, 2025
ITEM 5.4
Overview
◦ In June of 2023, the City Council adopted the Biennial Budget for Fiscal Years 2023/24 and 2024/25.
◦ At the mid-point of the fiscal year, staff is updating Council on the City’s financial status.
◦ Items for Council review include:
◦ Amendments to Year 2 of the Biennial Budget:
◦ Program Requests
◦ New/Revised Job Descriptions
◦ Amended Grade Step Table
◦ Amended Position Control Roster
Mid-Year Update
◦ Current revenue trends in property tax are better than projected; therefore, staff is recommending increasing property tax revenue by $1.5 million and property tax in lieu of VLF by $300 thousand. Staff will continue to evaluate revenues at the end of Year 2 (FY 2025) to recommend additional adjustments to projections if needed.
◦ The City of Lathrop continues to be one of the fastest growing cities in the State. With growing population there comes a need for additional staffing to provide service to our residents.
◦ The City’s tax base and development activity have become solid indicators that Lathrop needs additional staffing to be able to continue to deliver the high level of service that the community has come to expect. ◦ The following slides summarize the proposed mid-year staffing requests to add/create positions as well as reclassifications.
Mid-Year Staffing Requests
City Clerk
Reclass – Admin
Assist II to Admin
Tech II
Parks &
Recreation
Reclass – Sr Rec
Leader to Rec
Coordinator I
Public
Works
Reclass – Streets &
Maint Ops Mgr to
Parks, Streets &
Facilities Maint
Superintendent
Create & Fund New
GIS/CAD Engineering
Technician
Mid Year Staffing Requests -
Summary
3 Proposed
Reclassified
Positions
1 FTE Increase
to the Position
Control Roster
$184k
Annual
Increase All
Funds
New/Reclass
Positions
$47k Costs
for MidYear New
Position
$11k Mid-Year
Reclassification
Costs
Mid-Year General Fund Program
Requests
The following program/project requests require additional funding from the General Fund to address a specific need:
◦ Information Systems: Increase Miscellaneous Equipment and Subscriptions in the amount of $224k for the purchase of various software and hardware to replace equipment supporting the mobile virtual private network for the City’s fleet vehicles, replace 3 ISD high-performance computers to run advanced security and development software and renew essential software licenses that are critical to maintaining the city’s virtual environment. This expense will be offset by a transfer from the Equipment Replacement Reserve account. ◦ Capital Improvements: The City Council has authorized $1.2 million from Measure C funds to Project GG24-23 Lathrop Beautification Project. On January 28, 2025, the Measure C Oversight Committee found 50% of the expense in compliance with the use of Measure C funds, and requested Council consider an alternate funding source for the remaining 50%. Currently, the General Fund Landscape Reserve has funding to cover the remaining 50%. The transfer has been included in the mid-year for Council authorization.
General Fund
Summary
• Current revenue trends in
property tax seem
favorable and will be
evaluated at the end of
Year 2 (FY 2025) to
recommend additional
adjustments to projections
if needed.
• Expenditures are project to
end the year at $47.4
million.
• The City’s Reserve Policy
has established an
acceptable reservice
balance range of 10%-50%.
Currently, the unallocated
Fund Balance is 18% of
operating Expenses.
• Staff will continue to
update Council as
additional financial and
economic data becomes
available.
General Fund Mid-Year Request Summary
(in millions) FY 2025
Amended
FY 2025
Mid-Year
Begin Balance $8.1 $8.1
Revenue $45.3 $48.0
Expenditures $46.5 $47.4
Unallocated Fund Balance $6.9 $8.7
Notable Mid-Year Non General Fund
Program Requests
◦ $375k in the Water Fund for Backwash Tank Sludge Removal Services and Tank Decanter.
◦ $20k in the Water Fund for an upgrade to the transceiver kit in the water meter reading vehicles.
◦ $18k from the Storm Drain fund for a sink hole repair on D’Arcy. ◦ $261k from the Sewer Connection Fee Fund to Project WW22-38 LCTF Phase 3 Expansion for construction engineering support. ◦ $260k from CTF Sewer Fund for Chemical treatment and
replacement of anoxic zone tank.
Council Actions
Staff recommends the City Council:
◦ Adopt the proposed resolution amending Year 2 (FY 2025) of the adopted Biennial Budget for various funds and
projects as identified.
◦ Approve New & Revised Job Descriptions
◦ Amend the City’s Grade Step Table
◦ Amend the City’s Position Control Roster